More pain ahead for Indian startups

The funds flowing into Indian startups dried further in July and dropped below $1 billion for the first time this year, making it the worst month of 2022.

The dismal numbers made many industry veterans and investors warn that the situation could get worse amid global recession fears.

The funds raised in July by ventures across stages (seed, early and late) stood at $603 million, a 78 per cent drop from $2.76 billion in the year-ago period.

“There was a spike in valuations last year, what we are seeing now is the correction of this trend,” said Shivam Prasad, founding partner at early-stage venture firm Upsparks.